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Originally Posted by That Guy
no (i gave an example in a post the cap threads).
here's how a rework (salary -> bonus) has to work.
he gives back 500k in 2006, and to comply with the 30% rule, that means he'd have to give back 650k in 2007. that means 1.15million bonus which can only prorate over 4 years. 1.15mill / 4 = 287.5k a year in bonus. 500k - 287.5 = 212.5k actual savings, or about 40% of what he gives up.
the 30% and extra base salary you're forced to turn into bonus (from 2007) makes restructuring much less useful now than in previous years.
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Yup, forgot to account for the 30% rule. Duh. Thanks.
03-01-2006, 04:23 PM
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